New quarantine measures in China amid another outbreak of the coronavirus pandemic could affect laptop shipments, the publication reported commercial times. The government of the city of Kunshan, one of the central technology hubs of Jiangsu province, has ordered local manufacturers to adhere to new preventive measures against the spread of the disease outbreak, which could lead to a drop in laptop production.
Several Taiwanese laptop contract manufacturers have factories in Kunshan. These include, for example, Compal, Pegatron and Wistron. There is also the production of AUO (produces monitors) and Nanya (produces semiconductors, including DRAM memory chips). In addition, several factories are involved in the production of printed circuit boards.
The same Compal plants assemble laptops for brands such as Apple, Acer, Lenovo, Dell, Toshiba, HP and Fujitsu. Pegatron, founded by ASUS, makes laptops for it, as do Apple, Lenovo, and Microsoft. Wistron, an Acer spin-off, makes laptops for Lenovo, HP, Dell, Acer, and Xiaomi.
It should be noted that all of the above contract manufacturers have factories in other parts of China as well as around the world. For example, Pegatron also has factories in Taiwan, Mexico and Indonesia. And Wistron owns factories in Taiwan, Mexico, Malaysia and Vietnam.
It is unlikely that new restrictive measures in China will completely stop the production of laptops with such a wide geographical manufacturing base of these companies. However, more severe restrictive measures have been introduced in Shanghai, the closest major city to Kunshan and the world’s largest port in terms of cargo handling. Therefore, it is still difficult to predict the impact of the Chinese government’s measures on laptop shipments. More than 10,000 health workers and 2,000 soldiers were deployed to Shanghai last week to stop the spread of the coronavirus to other regions.